Nomad vs Sticks and Bricks Dollars and Sense!

[ORANGE]

I dont even know how to think about it or really post because there are variables.  But if I could query...

Supposing I can pay cash for a 40k house. 2/3 bd. It is inspected and not gonna need any cash outlay for repairs for a few years.  Say taxes are 60 a month?

Say you have a low income.  I dont even know what amount to put.  But just low as many here live under.

Does it make more Dollars and Sense to buy a sticks and bricks for longterm living for decades over just about ANY nomad vehicle scenario?

My thoughts are that vehicles are depreciating, whereas the house cold be sold same or more.  
With a vehicle you will still have a huge bankroll lets say cuz you didnt buy a house.
But a house if worst comes to worst one could rent a room. For income

Have any of you thrown numbers around and thought this through that you can help me how to look at this in a purely economic way and not adventure freedom vs staying in same place tied down.   

So if your life expectency is 2-3 decades  I guess what is the more frugal way to make your money last if the income stays relatively the same, say Social Security only.

 

[highdesertranger]

I think it all depends on what you want out of life. I you want a house buy a house, if you want to travel buy a vehicle. this is assuming you have low income. with a higher income you could do both. highdesertranger

 

[michaelwnoakes]

Financially you are absolutely right. The lifestyle one chooses has really nothing to do with money, but quality of life. Most homeowners spend the majority of their life paying for the dwelling, working, eating, sleeping, get up and do it again, year after year. You squeeze in vacation when you can thinking about retirement and dreams of final freedom.

Kids grow up and move onto their life. Maybe like me, you actually get to pay the house off. You retire only to realize that in your mind you are still very alive and energetic, but physically you cannot fulfill the ideas within you. The beautiful places you saw in the movies, videos, books, etc. while living the imitation vicarious life you so wanted while working to own things that when you die, someone else acquires are not accessible to you anymore. That awesome waterfall picture you hung on your wall is 20 miles in the mountains and you can't walk 2 anymore.

Then you die, never have lived.

Your live once, then die. You have to decide what your priorities are while you can. You get shot, that's it.

 

[ORANGE]

Both good answers. Keep them coming.

I guess I cant walk to see most waterfalls already. So adventure is the least of it. Outdoors is a biggie.

I watched Dee's videos the new one this week. She suddenly got health problems, broken bones, a stroke. Her first set-up that nomads helped her with had to go. I guess gofundme helped with bills (majority of nomads contributing because thats the sort of folks nomads are---great) and now she is in the cargo van and she hopes she can travel in a year and a half. I thought she was much older but she is mid 60s.

Thats what got me thinking.

What is better if it was Dee pre-car living 1st video Bob made? If she had that modest paid for home with her low/modest constant income or if she right now had that bankroll and started with much better than car, but started with that cargo she now has, or better.

I guess which way lasts longest Dollars and Sense wise?

 

[lenny flank]

Meh, I don't really spend much less living fulltime in a van than I did in an apartment. I just spend my money on different things now--instead of rent, I spend it on travel.

But then, I did not take up vandwelling to "save money"--I do it to travel. It's a big country, I want to see all of it, and vandwelling is the most flexible and most interesting way to do that.

It's like a permanent vacation.

 

[ORANGE]

Good answer.

I AM doing this for saving money/duration of money.

I cannot do both.

Is it possible to do one then the other say in 5-10 years. Or is it highly unlikely if vanning first you could buy that cheap home up the road.

 

[IGBT]

1)  There are not many areas of the country where you can buy a $40k house that doesn't need significant work

2)  Sometimes the climate in those areas will be so extreme that you will need to use a lot of heat or air conditioning to survive.   The nomad generally moves somewhat with the seasons so they don't experience these extreme climates.

3)  Houses do require serious work sometimes (broken pipes, roof, storm damage, termites).  Renting a small home or apartment may be better. If you can't hike to a waterfall, it is doubtful you can climb on the roof to do repairs yourself and so will have to hire people ($$$)

 

[MrNoodly]

1)  There are not many areas of the country where you can buy a $40k house that doesn't need significant work

The general rule of real estate (location, location, location) says housing in desirable places is expensive because those places are desirable, while housing in undesirable places is cheap because those places are undesirable. Everyone's idea of desirable and undesirable is different, of course, but if I'm going to give up mobility and the opportunity to stay in multiple wonderful locations, that house would need to be in a wonderfully amazing place.

 

[eDJ_]

I'm not a youngster anymore and because of this I've learned that people will begin to think a little differently at the beginning of each decade of their lives.   At twenty the world is wide open but you don't have money enough to do anything.  At 60 you now have the money but may not have the ambition to do anything.  See ?

If you married and had kids at 20 you will probably be in your mid 40's before the kids are on their own  and if you are going to do anything you had better be getting it in gear while you have the strength and inclination.   

Marketing people speak of something called "The Family Life Cycle" to describe this.

6 Stages

If I were in my mid 20's again I may be inclined to find some rural farmland and build a semi underground garage large enough to park a Class C or built out rig inside of.  One wall would be south facing and glazed recycled sliding glass doors to be passive solar.  The roof would keep a cistern full of water and 50 gallon hot water tank connected to a solar hot water panel.   One end would have an overhead garage door so the rig could be pulled inside.   The inside of this should stay at around 55 degrees f all year around.  The facility could be built out from there.

When weather is right I could pull the rig out and travel as much as I wanted until I wanted to return to my own place.  


Now at mid 40's I may make the choice to either travel or be in the sticks and bricks.    If I chose the home it would be one built into a slope with the south side exposed.  Again this would be glazed for passive solar heating.  I may live in the basement two seasons of the year to take advantage of the 55 degree f temperature. Heating would only require a 12 to 15 f rise in temps.  A/C may only require a  de-humidifier to pump the moisture out of the air in order to assure comfort.  There is the possibility of installing an air to air heat exchanger in the basement. 
But this would assume that I would still be working for another decade or two in a secure job market.  

In some areas you can declare that the house you are living in is not finished yet and you won't have to pay property tax on the house. (only the lot it sits on)  One only needs to check these laws before buying  a place.  Often you can build new and enjoy some of these loop hole laws that builders seem to enjoy.  I've seen any number of builders start a home and live in it for years leaving a gable end of the house less than 
covered.  When they get an offer and close...they finish the unfinished in a day or two and move on.  

If for some reason I were in a poor economic posture,  I would try to go full time nomad to travel and find a better economy.  There are plenty of "buy here pay here" car lots that if you were to get a job and need a car.......where you have your rig parked in a  park....and need transport to the job.....you could get this done.   Once you get a few pay days behind you,  then you could make decisions related to whether you could do better elsewhere or want to cash in and sell your rig and go to the sticks and bricks again.   But myself,  I'd keep the rig at least a year
while I decide on the future of the job and where it would take me.

Understand,  I speak from  experience here.  You are welcome to read my profile/bio.

 

[DLTooley]

For most people on this board the question is rather at what point in the aging process is it best to stop traveling.

I’m a part timer, able to do both - but traveling takes almost all of my disposable income. I have a section 8, so can move - and am considering doing so.

I’ll never sell my rig.

 

[Elbear1]

Equity doesnt matter if youre just going to die living there. If you subtract what youre going to be spending either way; food, insurance, medical, etc...plus youre probably going to have a vehicle and spend some gas, youre left with the cost of a vehicle being the only difference. Ive had 3 vehicles in 10 years the average cost being $2800. But i can work on them. But then again a mechanic is offset by a general contractor. A thousand a year for a vehicle is very easy. Even half that.

So yeah it can be way cheaper doing this over a house. It all depends, some people spend 1.5-2x the money to live in a van than I ever spent renting and driving to work every day.

 

[MrNoodly]

I've been single most of my adult life. (There was a five-year marriage we both realized was a mistake.) With no family to shelter I didn't buy a house until I was 41, because I didn't like the commitment. Renting meant I could more easily move to follow my career or my whims. Just give notice, pack up, clean it up and go. No mortgage, no taxes, no maintenance, no insurance, no worries. Sure, I wasn't building equity, but I was buying freedom.

There I was, in my late 50s, realizing I hated being a homeowner, hated being anchored (in a negative way) to one place, hated spending most of my time and money on a house I didn't really want. I was becoming a slug and a slave to the system. So I spent years researching my options, waiting for the housing market to recover enough that I could make some money on the house.

I discovered the nomadic life and I were perfect for each other. Live in a building again? Crap no. At least not by choice.

 

[Kaylee]

ORANGE:
One option that's been discussed in the past is to use one's "wandering" time to find a rent-subsidized apartment in an area of the country you'd like to live.

Living in a subsidized apartment is the most frugal option available.
The real problem is finding one you like.
Some of the shortest waiting lists are (apparently) in less popular but still beautiful areas of the country.

Perhaps folks could post past threads with good advice & numbers? I recall claims of monthly rents below $300 in rural parts of the West.

I think your realization that part-timing may be a better fit for your own situation, is a superb demonstration of self knowledge, which is rare & commendable.

 

[IGBT]

I did just think of one advantage of owning a sticks and bricks.

If you need to qualify for various assistance, sometimes the primary home is not taken into consideration as far as assets.  I forget which ones, maybe SSI or something?, you can't have more than $2,000 in the bank and only $xxx in possessions NOT including the value of your residence.  So someone with $40k in the bank renting an apartment using that money would not qualify while someone with $2k in the bank and a $38,000 paid off house would qualify.

Not fair but what in life is?

 

[ORANGE]

Wow these answers are coming fast!
Yes IGBT that is true.  You can be broke owning your own home value 40k and MORE and get all kinds of assistance, even repair assistance programs and utility assistance.

Falling on hard times (able to generate zero income) means you HAVE to burn through all your money  40K yto be really broke to qualify for assistance.

That is why this is such a big decision!

 

[ORANGE]

Now as far as housing.

40k in the South is doable, liveable enough. Good bones, not needing major replacement. But YES need beauty, paint, flooring kitchen/bathroom refresh, but just like a crappy van you can still live in it/with it, while you improve or not the inside.

And in TN the electric is cheap as can be!! So heat/cooling NOT expensive. Plus it is already beautiful or near beauty!

Kaylee I think that would be a trap for me of wandering to find. Wouldnt know when to stop? Or used to wandering the winds blow once again and wanting to wander again even after a this is it decision.

 

[Natgreen]

I do it for the freedom
Saving money is a side effect

 

[Kaylee]

Orange, that's why "part-timing" feels like a good fit for you, at least to start.
You can use your existing vehicle & homebase, with minimal extra expenses, to search for something longer term.

Start with small steps, and build momentum.

 

[ORANGE]

Kaylee you may just be the final word.

I will make no decision either way but decide partway.

Make a daytripper/weekender out of the van. And not do anything else for a year. One full year. Stay on board here learn what to buy (like my cooking/cooker post) etc.

 

[IGBT]

We are in a apartment right now but also have made a weekender, road tripper out of a 2018 Ford Transit.  I think it is a good way to see if the mobile life is agreeable.   We started off a few years back with a home built RV but it was a little big to go everywhere we wanted.   We still have that though and might put it on a different truck in the future and continue.  It is safe under a pole barn we built on some cheap forest land we purchased ($29 a year in tax for near 30 acres!).

The biggest issue is if you have some assets and need medical care.   If you are not near your home base, you are going to incur some serious charges and possible balance billing because you will very likely be out of network even if you have coverage in your home state.   For us in Washington, we have a great subsidized plan for less than $100 a month, however it is definitely not nationwide.  If we are traveling in Florida and need extended medical care, we will have to fly back to Washington, drive back to Washington, or just eat the costs, which who knows, could be a lot more than a airplane flight.

It is the downside of trying to be a nomad with assets to protect.   Balance billing can be huge, but you can't squeeze blood from a turnip as they say.